Erik W. Weibust

Select Trade Secret, Restrictive Covenant, and Employee Raiding Experience (by Industry)

Pharmaceutical/Biotech/Life Sciences/Medical Device/Health Care

• Represents the owner of skilled nursing facilities in an action in New Jersey Chancery Court against a former director of nursing arising out of the raiding of several former colleagues and subordinates. Erik obtained a two-year injunction against the employee and competitor and is currently pursuing a claim for millions of dollars in damages.
• Represented a publicly traded Chinese biopharmaceutical company in connection with high-profile civil and criminal trade secret litigation in federal court in California. Erik conducted an in-depth investigation, successfully convinced the plaintiff not to add Erik’s client as a defendant, and avoided further inquiry by the FBI.
• Represented a biopharmaceutical company in conjunction with the departure of one of its founders and senior executives to join a competitor as its chief scientific officer, and his misappropriation of trade secrets. Erik conducted an investigation and obtained a favorable pre-litigation settlement.
• Represented a Fortune 500 medical device manufacturer and a top-performing sales representative in an action brought by a competitor for an injunction prohibiting the sales representative from working in a competitive role anywhere in his former sales territory for one year. Erik negotiated a very favorable settlement on the day of the injunction hearing, following statements by the judge about his likely ruling following the hearing.
• Represented a national pharmacy services organization focused on providing care to patients with HIV and AIDS in trade secret and restrictive covenant litigation against former senior sales representatives and their new employer.
• Defended and favorably settled claims by a staffing company against a publicly traded biopharmaceutical company concerning the direct hire of a senior validation engineer.
• Defended and defeated a motion for a preliminary injunction to prohibit a clinical toxicology laboratory from hiring a sales representative from a competitor. The competitor voluntarily dismissed the case after the denial of the competitor’s motion.
• Defended and favorably settled claims of breach of contract and conspiracy brought against a biotech company by a competitor concerning the decision of sales representatives to leave the competitor and join the client company.
• Obtained voluntary dismissal of a national medical device company from a lawsuit brought by a competitor concerning the decision of sales representatives to leave the competitor and join the client company.

Financial Services/Insurance

• Is defending the Chief Operating Officer (COO) and representing several other senior executives in a high-profile employee raiding and trade secret misappropriation lawsuit in the North Carolina Business Court involving two major players in the trillion-dollar private credit industry. Erik obtained dismissal, with prejudice, of virtually all claims against the COO on a motion to dismiss. He is pursuing a defamation claim against the COO’s former employer for false statements made to and printed by the worldwide business press in connection with the lawsuit.
• Represented a boutique wealth management firm in a lawsuit in federal court in Massachusetts against a former partner for violations of the federal Stored Communications Act and the Defend Trade Secrets Act, among other things, arising from the former partner’s hijacking of the firm’s website and email servers and attempted poaching of clients. Erik obtained broad injunctive relief and negotiated a very favorable settlement literally on the eve of trial.
• Defended a boutique wealth management firm and its four founders in a lawsuit brought by their former employer, arising out of the founders’ departure and transition of over $1 billion in assets under management to their new company. Erik defeated a motion for a preliminary injunction in all important respects and obtained dismissal of the trade secret and unfair competition claims. He also negotiated a very favorable settlement in which the clients paid far less than the demand; indeed, far less than they would have voluntarily paid years earlier.
• Represented the largest publicly held insurance company in the United States in an investigation of, and litigation arising out of, a conspiracy by approximately 50 independent agents, employees, and related entities to misappropriate trade secrets and manipulate commissions. There were multiple lawsuits filed in various federal courts across the country, resulting in broad injunctive relief and ultimately a very favorable settlement.
• Prosecuted claims in federal court in Kentucky on behalf of the largest publicly held insurance company in the United States against a former independent sales agent and her new agency for trade secret misappropriation and breach of restrictive covenant agreements. Erik obtained injunctive relief prohibiting the former agent from doing business with the insurance company’s clients for an additional year after the restrictions expired.
• Defeated a motion for a preliminary injunction that would have prohibited two financial advisors, with a combined $1 billion in client assets under management, from moving their business from a high-end boutique wealth management firm to one of the oldest and largest wealth management firms in the world, invalidating the boutique’s restrictive covenant agreement in the process. The decision was upheld on appeal.
• Prosecuted and favorably settled a claim on behalf of a national insurance brokerage firm in a suit against a former owner and director, and a competitor firm, for breach of fiduciary duty, misappropriation of trade secrets, breach of a noncompete agreement, interference with contract, and unfair competition.
• Prosecuted separate actions against two former sales representatives of a national lending company and a competitor for violations of the federal Computer Fraud and Abuse Act, misappropriation of trade secrets, and unfair business practices. Erik obtained preliminary injunctions preventing the sales representatives from doing business with the client's customers despite the lack of noncompete or non-solicitation agreements.
• Defended and favorably settled claims of breach of a noncompete agreement, breach of fiduciary duty, tortious interference, and unfair competition against a national financial services firm and two investment advisors brought by a competitor concerning the decision of the investment advisors to leave the competitor and join the client firm.

Technology

• Defended a leading consumer electronics company and a manager in a contentious dispute in the New Jersey Chancery Court with the manager’s former employer. The former employer alleged that the manager should not be permitted to work for our client because he would inevitably disclose trade secrets in the course of his work in the same role he previously worked. Erik defeated motions for a temporary restraining order and a preliminary injunction, permitting the manager to continue working for our client without any restrictions, and ultimately settled on very favorable terms.
• Represented the leading interactive fitness and technology company in a dispute with one of its former celebrity instructors arising out of her threatened improper competition and in a separate dispute involving allegations of employee raiding by a competitor.
• Represented a leading travel and event technology company and a senior executive in an action brought by a competitor in a federal court in Connecticut alleging claims of trade secret misappropriation, unfair trade practices, and breach of contract. Erik obtained a highly favorable settlement following the filing of a motion to dismiss and an aggressive discovery campaign.
• Prosecuted claims in North Carolina on behalf of an international application and network performance management company against a former senior-level salesman for breach of restrictive covenants arising out of the abrupt departure and joining of a competitor. Erik obtained a favorable settlement minutes before the preliminary injunction evidentiary hearing.
• Prosecuted claims in Massachusetts on behalf of an international application and network performance management company against a former senior-level sales engineer for breach of restrictive covenants arising out of the abrupt departure and employment with a competitor. Erik obtained a broad preliminary injunctive relief requiring the employee to stay out of his former territory and away from certain identified customers, among other things.

Staffing/Recruitment

• Prosecuted a multi-jurisdictional action involving four lawsuits in federal and state courts in Georgia and Texas on behalf of the world’s second-largest staffing firm against a competitor arising out of a competitor’s raiding of approximately 40 employees. Erik secured preliminary and permanent injunctive relief against three former employees and ultimately obtained a highly favorable settlement.
• Prosecuted a multi-jurisdictional action in the federal courts in Georgia and Maryland on behalf of the world’s second-largest staffing firm against a former national director and two executive recruiters, arising out of the national director’s recruitment of executive recruiters to join his newly formed competing firm while still employed by Erik’s client. Erik obtained broad-reaching injunctive relief against all three employees, including one who did not have an agreement, prohibiting them from competing or soliciting the staffing firm’s customers in the former employees’ territories.
• Prosecuted a multi-jurisdictional action in the federal courts in Massachusetts and Maryland on behalf of the world’s second-largest staffing firm against former executive-level employees and a competitor for trade secret misappropriation, breach of restrictive covenant agreements, and unfair competition. Erik obtained a highly favorable settlement.
• Prosecuted claims in federal court in Massachusetts on behalf of the world’s second-largest staffing firm against multiple former employees and a competitor for trade secret misappropriation, breach of restrictive covenant agreements, and unfair competition. Erik obtained a highly favorable settlement.
• Prosecuted claims in federal court in New Jersey on behalf of the largest African-American-owned IT staffing solutions firm in the United States against a former California employee and his new employer for breach of a restrictive covenant agreement, tortious interference, and violations of the Defend Trade Secrets Act. Erik obtained broad injunctive relief prohibiting the former employee from working for the competitor or soliciting customers for one year from his date of termination in the San Francisco, California, area. Erik favorably settled the remaining claims.
• Defended a Fortune 500 staffing agency and 10 of its employees in an action brought by the employees’ former employer in Massachusetts, alleging breach of noncompete agreements, interference, and unfair competition. Erik negotiated a favorable settlement following the dismissal of the plaintiff’s claims in federal court.
• Prosecuted claims in federal court in Florida on behalf of an international staffing agency against a former senior executive for theft of trade secrets, violations of the Computer Fraud & Abuse Act, and unfair competition. Erik obtained a broad preliminary injunction barring solicitation of the staffing agency’s clients despite the absence of a non-solicitation agreement.

Defense/Manufacturing/Industrial/Energy

• Represented a publicly traded federal defense contractor in an action seeking to claw back substantial equity from its former Chief Information Officer (CIO), arising out of her departure and decision to join a direct competitor as its CIO in violation of restrictive covenants contained in her equity grant and options agreements. Erik negotiated a very favorable settlement at mediation.
• Defended a start-up federal defense contractor and its two California-based founders in a lawsuit brought by their publicly traded former employer, claiming that the individuals had misappropriated trade secrets and confidential information concerning proprietary fuel cell technology and were using that information to compete unfairly for U.S. Army contracts. Erik obtained a complete dismissal of the claims against his clients.
• Represented a federal defense contractor in international arbitration in Frankfurt, Germany, arising out of the alleged poaching of a subcontractor’s employees at medical facilities on U.S. bases in Germany and Italy.
• Prosecuted claims in federal court in Maryland on behalf of a high-end plumbing fixture manufacturer against a former senior executive for violations of the Computer Fraud and Abuse Act and the Stored Communications Act and breach of contract, arising out of the executive’s improper access to company systems following his resignation and subsequent employment with a competitor. Erik obtained broad injunctive relief.
• Prosecuted claims in federal court in Virginia on behalf of a leading manufacturer against a former high-level employee for actual and threatened misappropriation of trade secrets in violation of the Defend Trade Secrets Act. Erik obtained preliminary and permanent injunctive relief barring the employee from using confidential information or conducting business with customers for one year, despite the lack of any post-employment restrictive covenants, and an award of attorneys’ fees.
• Prosecuted claims on behalf of the largest industrial plumbing supplier in North America in multiple jurisdictions against a competitor and eight former senior-level employees for misappropriation of trade secrets, breach of fiduciary duties and restrictive covenant agreements, unfair competition, and conspiracy, among others, arising out of the competitor’s raiding of the entire Ohio Valley industrial group and attempted poaching of major customers. Erik reached a settlement on the eve of trial requiring a multimillion-dollar payment and extensive restrictions on hiring and solicitation of employees and customers, among other things.
• Successfully defended a renewable energy company in an investigation by the U.S. Department of Justice into the alleged theft of trade secrets in violation of the federal Economic Espionage Act. No charges were brought.

Select Unfair Competition and Other Complex Commercial Litigation Experience

• Prosecuted claims on behalf of the owner of a major professional sports team against a former operator of the team’s two Boeing 767-300 aircraft used for travel to away games, arising out of the former operator’s refusal to return aircraft and related records following termination of its management agreement. Erik obtained injunctive relief in Massachusetts Superior Court requiring the return of the two aircraft, and ultimately prevailed on substantial damages claims (and defeated counterclaims seeking tens of millions of dollars in damages) following a five-day hearing (via Zoom) before a panel of three distinguished arbitrators.
• Defended a leading clinical toxicology laboratory at a multi-day arbitration hearing against claims by a former sales contractor claiming upwards of $65 million in unpaid commissions and interest over nine years. Erik successfully disposed of numerous claims (including those providing for multiple damages and attorneys’ fees), limiting the damages period to three months and total damages to well under 1 percent of the claim.
• Defended and obtained a complete defense verdict following a five-day arbitration on behalf of the founder and former CEO of an early-stage pharmaceutical company, in a suit brought by the company alleging fraud, breach of fiduciary duty, and breach of contract arising out of alleged misrepresentations concerning the status of the FDA approval process.
• Represented a leading clinical toxicology laboratory in a multistate lawsuit against a competitor alleging unfair competition arising out of the competitor’s illegal kickbacks to customers. Erik prevailed on summary judgment on the competitor’s unfair competition and tortious interference counterclaims arising out of alleged billing fraud and obtained a highly favorable settlement on the eve of trial. Erik also coordinated with criminal defense counsel representing the client and its executives in connection with a related Department of Justice investigation and qui tam
• Defended and obtained a complete defense verdict following a seven-day jury trial in New Jersey on behalf of a high-end millwork manufacturer and installer, in a suit brought by the former president and shareholder of the company for breach of shareholder and employment agreements. In addition, Erik prosecuted and recovered substantial damages on counterclaims for breach of fiduciary duty and failure to repay loans and cash advances.
• Defended and obtained summary judgment on the eve of trial on behalf of a national telecommunications company in a patent infringement case brought by a former employee.

Select Real Estate and Franchise/Distribution Litigation Experience

• Defended a national supermarket chain against claims of unfair business practices, tortious interference, and conspiracy by an abutting landowner in Massachusetts arising out of a failed development deal. Erik obtained the complete dismissal of claims on summary judgment following two years of discovery and a final demand prior to summary judgment of $8 million.
• Prosecuted claims in federal court in Massachusetts on behalf of an APAC distributor of a U.S. medical device manufacturer for breach of distribution agreement and unfair business practices. Erik obtained a favorable settlement after defeating a motion to dismiss.
• Obtained a substantial judgment on behalf of a leading manufacturer of high-end audio equipment in an international arbitration against a Chilean distributor for breach of a distribution agreement arising out of the distributor’s sale of equipment on the gray market in Europe and failure to pay amounts owed under the distribution agreement.
• Represents the largest convenience store chain in the world in real estate litigation nationally, including landlord/tenant disputes and disputes with abutters, contractors, and governmental entities.
• Prosecuted multiple successful actions in various states on behalf of the largest convenience store chain in the world against its franchisees, resulting in injunctive relief requiring immediate eviction of franchisees and surrender of inventory and intellectual property.
• Defended a large government contractor in a dispute with a former landlord over unpaid rent and termination fee. Erik obtained a very favorable settlement, substantially reducing the amount owed.
• Defended the owner of a premier office building in Boston in a dispute with a tenant regarding alleged damage to the tenant’s property resulting from a roof leak. Erik obtained a very favorable settlement.

Select Labor & Employment Litigation Experience

• Represented a national telecommunications company during an employee strike. Erik obtained an injunction from a three-judge panel, following a multi-day evidentiary hearing, barring the union from certain strike-related activities, effectively ending the strike.
• Defended and obtained a complete defense verdict following a jury trial on behalf of a national financial services firm and its CEO and CFO, in a suit brought by a former senior vice president of the firm for tortious interference with his employment relationship. Erik represented the clients on appeal, where the verdict was upheld.
• Defended and obtained summary judgment on behalf of a national telecommunications company in a discrimination and retaliation suit brought by a former employee. Erik represented the client on appeal, where the verdict was upheld.
• Obtained dismissal of a Wage Act claim against an insurance brokerage company and its former CEO brought by a former executive of the company.